The petitioner, who is running a petroleum fuel outlet in the land leased to him by the Government, has come forward with this writ petition, challenging the demand notice issued by the respondent/municipality demanding property tax for the structure put up by the petroleum company, namely Indian Oil Corporation in the petrol bunk run by the petitioner.
2.Claiming that there is no assessment of tax before issuance of notice,the learned counsel for the petitioner would contend that the demand notice is without any basis. Upon instructions, Mr.P.Mahendran, learned counsel appearing for the Aranthangi Municipality would submit that the assessments, though made are not in accordance with the procedure prescribed under the District Municipalities Act. It is also the contention of Mr.P.Mahendran, learned counsel appearing for the Respondent that the Petitioner is bound to disclose the nature of construction and details of additional constructions under Section 89 of the District Municipalities Act and the Petitioner has not performed its statutory obligation. However Section 82 of the said Act prescribes methods for assessment of tax. Unless, proper assessment is made under Section 82 of the District Municipalities Act, the Municipality cannot raise a demand for tax. As against the assessment, there is also an appeal provided for under the Act to the Taxation Appeal Committee. The proper assessment is a pre-condition for a demand notice. Since the assessment has not been made in accordance with law, the demand notice cannot stand the legal scrutiny and will have to be set aside. Hence demand notices are set aside. The Writ Petition stands allowed. It is made clear that it is open to the municipality to assess the superstructure put up by the petitioner as per section 82 of the District Municipalities Act. The petitioner shall co-operate with the municipality by furnishing the details. While assessment is made, the assessing authority shall also bear-in-mind the fact that the Petitioner is not the owner of the land and he is only a lessee.
3.With the above observation, the Writ petition is allowed. It is open to the respondent/Municipality to make assessment from the second half year of 2005-2006. Consequently, connected Miscellaneous Petition is closed. No costs.
To The Commissioner, Aranthangi Municipality, Aranthangi Taluk, Pudukkottai District.